Results Impacted by COVID-19
Additional Financing to Strengthen Liquidity Position
FINANCIAL HIGHLIGHTS
Highlights for the Year Ended
Compared with the year ended
- Revenues decreased from
$34.2 million to$25.9 million . - Recurring revenues decreased from
$8.6 million to$7.3 million . - Net loss went from
$1.7 million to$6.3 million . - Net loss for this year includes
$1.4 million of restructuring costs to reflect the change of the organizational structure and$1.3 million of impairment charges. - Adjusted EDITDA* decreased from
$2.1 million to$0.6 million .
Highlights for the Fourth Quarter Ended
Compared with the fourth quarter ended
- Revenues decreased from
$8.3 million to$6.6 million . - Recurring revenues decreased from
$1.8 million to$1.3 million . - Net loss went from
$0.6 million to$3.1 million . - Net loss for this quarter includes
$0.4 million of restructuring costs and$1.3 million of impairment charges. - Quarterly Adjusted EBITDA* amounted to
$7 thousand compared with$0.3 million .
"The COVID-19 pandemic abruptly and severely impacted D-BOX’s fourth quarter results. With mandated social distancing and government-imposed temporary shutdown of entertainment venues around the world, the impact on our industry was exacerbated during the month of March. While most of our customers around the world have reopened or are planning to reopen in the near future, the timing for a full recovery remains uncertain and first quarter and second quarter financial results will most likely be adversely impacted,” stated
“Despite the economic challenges, our main concern remains the health and safety of our customers, partners and our employees, whom I thank for their unconditional dedication under tough conditions," added
Fiscal Year and Fourth Quarter Ended (in thousands of dollars, except per share data) | ||||||||
Fiscal Year | Fourth Quarter | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Revenues | 25,895 | 34,164 | 6,560 | 8,309 | ||||
Net loss | (6,250 | ) | (1,705 | ) | (3,096 | ) | (551 | ) |
Adjusted EBITDA* | 612 | 2,062 | 7 | 267 | ||||
Basic and diluted net loss per share | (0.036 | ) | (0.010 | ) | (0.019 | ) | (0.003 | ) |
Information from the consolidated balance sheets | ||||||||
As at | As at | |||||||
Cash and cash equivalents | 4,116 | 9,635 |
* See the “Non-IFRS” measures” section in the Management’s Discussion and Analysis dated
On
On
The signed term sheet from
OPERATIONAL HIGHLIGHTS
- On
March 11, 2020 , theWorld Health Organization declared coronavirus (“COVID-19) a global pandemic. Most governments have enacted emergency measures to combat the spread of the virus, including travel bans, mandatory closures of nonessential services and businesses and social distancing. These measures have caused material disruption to businesses worldwide resulting in economic uncertainty, supply chain disruption, change in consumer demand. At the present time, D-BOX cannot reliably provide an estimate of the duration or magnitude of the outbreak and its impact on the Corporation’s financial results.
- In the professional simulation segment,
CM Labs , the leading vendor for simulation-based training in the construction industry with over 1,000 simulators in 30 countries, has developed a new simulator. This simulator, which integrates D-BOX’s motion technology, is adapted for the training of heavy equipment operators.
- In the themed entertainment, BRP Inc., a global leader in powersport vehicles and marine products, has developed a Ski-Doo simulator with D-BOX’s motion technology to replicate an immersive experience.
- In the theatrical segment, D-BOX expanded its footprint with the additions from Premiere Cinemas (
USA ), Traumpalast (Germany ) and Golden Screen Cinemas (Malaysia ).
ADDITIONAL INFORMATION REGARDING THE FISCAL YEAR AND FOURTH QUARTER ENDED
The financial information relating to the fiscal year and fourth quarter ended
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS)*
Adjusted EBITDA provides useful and complementary information, which can be used, in particular, to assess profitability and cash flows from operations. It consists of net income (loss) excluding amortization, financial expenses net of income, income taxes, impairment charges, share-based payments, foreign exchange loss (gain) and non-recurring expenses related to restructuring costs.
The following table reconciles adjusted EBITDA to net loss:
(Amounts are in thousands of Canadian dollars)
Fiscal year ended | Fourth quarter ended | |||||||
2020 | 2019 | 2020 | 2019 | |||||
Net loss | (6,250 | ) | (1,705 | ) | (3,096 | ) | (551 | ) |
Amortization of property and equipment | 1,914 | 1,934 | 523 | 422 | ||||
Amortization of intangible assets | 905 | 800 | 241 | 198 | ||||
Amortization of other assets | 2 | 3 | — | 1 | ||||
Impairment of property and equipment | 765 | — | 765 | — | ||||
Impairment of intangible assets | 508 | — | 508 | — | ||||
Impairment of finance lease receivable | 52 | — | 52 | — | ||||
Financial expenses (income) | 545 | 529 | 78 | 145 | ||||
Income taxes (recovery) | 8 | 10 | 9 | (36 | ) | |||
Share-based payments | 155 | 157 | 39 | 48 | ||||
Foreign exchange loss | 605 | 334 | 488 | 40 | ||||
Restructuring costs | 1,403 | — | 400 | — | ||||
Adjusted EBITDA | 612 | 2,062 | 7 | 267 |
* See the “Non-IFRS measures” section in the Management’s Discussion and Analysis dated
ABOUT D-BOX
D-BOX redefines and creates realistic, immersive entertainment experiences by moving the body and sparking the imagination through motion. D-BOX has collaborated with some of the best companies in the world to deliver new ways to enhance great stories. Whether its movies, video games, virtual reality applications, themed entertainment or professional simulation, creating a feeling of presence that makes life resonate like never before.
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS
This news release contains statements that may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, activities, objectives, operations, strategy, financial performance and condition of the Corporation, or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including but not limited to, the closing of the financings with the National Bank of Canada and the
These risks, uncertainties and assumptions include, but are not limited to, those described under “Risk Factors” in the Corporation’s Annual Information Form for the fiscal year ended
FOR FURTHER INFORMATION, PLEASE CONTACT:
Chief Financial Officer 450-442-3003, ext. 296 dmontpetit@d-box.com | Vice President Investor Relations and Corporate Strategy 450-442-3003, ext. 403 sli@d-box.com |
Source:
2020 GlobeNewswire, Inc., source